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Bank Indonesia Issues a New Regulation on the Reporting of Foreign Exchange Flow Activities 

by Lina Amran, Stephanie Kandou, Maharanny Hadrianto

Published: March, 2019

Submission: April, 2019

 



Bank Indonesia (“BI”) recently issued Regulation No. 21/2/PBI/2019 on theReporting of Foreign Exchange Flow Activities (Kegiatan Lalu Lintas Devisa)(“Reg. 21/2”) on 7 January 2019, which came into effect on 1 March 2019.


Reg. 21/2 partially revokes BI Regulation No. 16/22/PBI/2014 on the Reportingof Foreign Exchange Flow Activities and the Reporting of the Application of thePrudential Principle in the Management of Non-Bank Entities’ Foreign Debts(“Reg. 16/22”), replacing all the provisions of Reg. 16/22 on the reporting offoreign exchange flow activities. Therefore, when Reg. 21/2 comes into effect inMarch 2019, Reg. 16/22 will only cover reporting on the application of theprudential principle (kegiatan prinsip kehati-hatian– KPPK).

 

Foreign Exchange Flow Report

 

Scope

 

Reg. 21/2 has added risk participating transactions (transaksi partisipasi risiko – “TPR”) to be reported as a part of the foreign exchange flow report (“Flow Report”). A TPR is defined as a risk assignment transaction of individual credit or other facilities under a master risk participation agreement. The scope of the Flow Report (“Flow Report Scope”) covers the following data and information:

 

  1. trade transactions of goods, services, and other transactions between a resident (ie a person, legal entity or other entity domiciled in Indonesia) and a non-resident;
  2. principal data of offshore debts (utang luar negeri – “ULN”) and/or TPR;
  3. the plan of the ULN and/or TPR disbursements and/or payments;
  4. the realization of the ULN and/or TPR disbursements and/or payments;
  5. the position of and amendments to offshore financial assets (aset finansial luar negeri), offshore financial liabilities (kewajiban finansial luar negeri) and/or TPR; and/or
  6. a new ULN plan and/or its amendment.

Except for TPR and the information required in items c) and d) of the Flow Report Scope above on the plan and realization of ULN and/or TPR disbursements which are now covered by Reg. 21/2, the remaining scope of the Flow Report above is similar to the scope under Reg. 16/22. The Flow Report must be submitted by the reporting party online through BI’s reporting website.


 

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